Bitcoin is a cryptographically protected digital currency, or peer-to-peer electronic cash system, founded using blockchain technology. Bitcoin has eliminated the need for governments and central banks to manage and regulate a currency, instead trust is now placed in corporations with secure blockchain verification for all transactions.

Q2) Who invented Bitcoin?

The inventor, or founder of Bitcoin, is widely believed to be a person or persons named Satoshi Nakamoto. The identity of Satoshi Nakamoto has never been revealed and little is known about the anonymous computer programmer.

Q3) How does Bitcoin Mining work?

Because Bitcoin is not regulated in the traditional sense by a central bank or government, it requires a system of distribution. “Bitcoin mining” describes the process of miners who use time, powerful central processing units (CPUs) and large amounts of electricity to solve complex equations which add transaction records to Bitcoin’s public, digital ledger or blockchain.

Q4) What is a Bitcoin wallet?

A Bitcoin wallet is essentially a bank account or digital wallet designed to hold Bitcoin.

Q5) Do I need a Bitcoin wallet to trade?

No – When you trade CFDs on Bitcoin you are speculating on price movements in the Bitcoin market rather than owning the underlying asset.

Q6) How can I trade Bitcoin?

At City Index you can trade Bitcoin as a CFD. For more information, including pricing details, on these please view our Bitcoin CFD Trading page.

Q7) How much is Bitcoin worth?

Like any asset the price of Bitcoin may rise and fall and due to higher volatility in the Bitcoin market prices may surge or drop at greater rates than for more traditional assets.

Q8) How does City Index price Bitcoin?

Bitcoin is traded on multiple independent digital asset exchanges around the world and the diversity of these exchanges can mean that there are different prices for Bitcoin at different times and in different regions.

City Index offers competitive Bitcoin pricing based on prices models provided by multiple digital asset exchanges. We use industry leading digital asset exchanges to produce a volume weighted average price that is representative of the underlying market. You can view our pricing information on our Bitcoin page or in the Market Information sheet in platform.

Q9) Is there an overnight financing charge for holding Bitcoin?

Yes. Overnight financing is charged at 0.08219% per day (May change due to market conditions. For a full list of charges, see our Bitcoin page).

We would calculate the notional value of your trade as $5 x 9420 = $47100. This is then multiplied by our financing charge of 0.08219% for a total of $38.71

The overnight financing charge would be processed if you hold a position overnight i.e after market close at 21:00.

Due to the higher than normal levels of volatility in the Bitcoin market we strongly advise against holding positions overnight.

Please note: Bitcoin financing charges are only applied to live trading accounts at City Index. Should you wish to calculate what financing charges would be on a relevant demo account position, you can do so using the formula:

In the event that the current bitcoin splits into two, new bitcoins– known as a hard fork – we will generally follow the bitcoin that has the majority consensus of cryptocurrency users and will therefore use this as the basis for our prices. In addition we will also consider the approach adopted by the exchanges we deal with, which will help determine the action we take.

We reserve the right to determine which cryptocurrency unit has the majority consensus behind them.

As the hard fork results in a second cryptocurrency, we reserve the right to create an equivalent position on client accounts to reflect this. However, this action is taken at our absolute discretion, and we have no obligation to do so.

If the second cryptocurrency is tradeable on major exchanges, which may or may not include the exchanges we deal with, we may choose to represent that value, but have no obligation to do so. We may do this by making the product available to close based on the valuation, or by booking a cash adjustment on client accounts.

If, within a reasonable timeframe, the second cryptocurrency does not become tradeable, then we may void positions that had previously been created at no value on client accounts.

Over periods of substantial price volatility around fork events, and we may take any action as we consider necessary in accordance with our terms and conditions including suspending trading throughout if we deem not to have reliable prices from the underlying market. For more information, please contact our Client Support team.

Markets

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

GAIN Capital recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade.